If support-service cost allocations are arbitrary and potentially misleading, should we assume that managers are foolish for

Question:

If support-service cost allocations are arbitrary and potentially misleading, should we assume that managers are foolish for using information about which services to provide based on allocated service costs?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

See More Books

Question Posted: Jul 18, 2024 07:03 AM

See More Questions

are often divided into prime costs and conversion costs. For decision making purposes, fixed costs product costs period costs sunk costs
Explain the similarities and differences between job order costing and process costing. In your explanation, provide examples of when job order costing and process costing would be most appropriate....
In Chapter 3, you were introduced to 3 types of costs associated with a manufactured product ? direct materials, direct labor, and manufacturing overhead. Explain how these costs are associated with...
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 %u2013$ 39,200,000 1 63,200,000 2 %u2013 12,200,000 a-1 What is the NPV for the...
Ace Training supplies clothing to qualified low income families. Ace buys damaged lots from suppliers and sells them to local organizations at small markups. Ace has committed to a break even budget...
Explain how the existence of line spectra is consistent with Bohrs theory of quantized energies for the electron in the hydrogen atom.
What do you believe the proportion of revenues from different sources is for your organization?
BAP Corporation is reviewing an investment proposal. The initial cost and estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income...
Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $310,000. All sales were on account. Compute the following financial data and ratios: 1. Working...
One critic of cost allocation noted, You can avoid the problem of arbitrary cost allocations by simply not allocating any higher-level resource service costs to lowerlevel uses of resources. Prepare...
Respond to this comment: Outsourcing is based on a market economy and, therefore, is the most efficient way to obtain a service. Consider the following conversation between a selfstyled...
Effect of inventory cost flow on ending inventory balance and gross margin Dugan Sales had the following transactions for jackets in 2013, its first year of operations: During the year, Dugan Sales...
A bulk carrier was underway. The vessel was in ballast and hold washing was scheduled in preparation for taking the next cargo. An officer, bosun, and another deck crew conducted a risk assessment...
8. Neutrino radiation was observed over a certain period and the number of hours in which 0, 1, 2,... signals were received was recorded. 0 1 Number of Number of Hours with Signals per Hour This...
What are some advantages and disadvantages of centralization and decentralization. References: Altamimi, H., Liu, Q., & Jimenez, B. (2023). Not Too Much, Not Too Little: Centralization,...
Over the past 40 years, union membership has declined, and it continues to do so. Instead, many companies are turning to alternative dispute resolution. We know one of the best union avoidance...
Article "A Leader's Journey" by Pamela Kruger Photographs by Nigel Dickson. For this discussion, let's try and unpack the key factors that led to his transformation. 1. What are your key takeaways...
Last year (2011), Bourne Company installed new factory equipment. The owner of the company, Jason Bourne, recently returned from an industry equipment exhibition where he watched computerized...
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
Q: Question 1. The determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources is called which of the following...
Orbital Communications has operating plants in over 100 countries. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 270,000 kronas in Norway worth...
( a ) Required The unadjusted trial balance has been entered on a 1 0 - column end - of - period spreadsheet ( work sheet ) for you. Complete the spreadsheet using the following adjustment data a...

If support-service cost allocations are arbitrary and potentially misleading, should we assume that managers are foolish for

Question:

Step by Step Answer:

Cost Management Strategies For Business Decisions

Students also viewed these Business questions